Skellefteå Faces Population Decline After Northvolt Bankruptcy
Skellefteå experiences a population decline due to Northvolt’s bankruptcy, jeopardizing growth targets and housing market stability.
Key Points
- • Approximately 3,000 people are expected to leave Skellefteå due to Northvolt's bankruptcy.
- • Housing prices have dropped by around 20%, with many apartments vacant.
- • Municipal growth targets of 95,000 residents by 2030 now at risk.
- • Economic chief Lundqvist described the situation as "miserable."
Skellefteå is confronting a significant demographic crisis following the bankruptcy of battery manufacturer Northvolt, resulting in a rapid population decline that is jeopardizing municipal growth targets. According to recent reports, approximately 1,700 residents have left the city since November 2024, and projections indicate that another 1,300 individuals are expected to move out by the end of this year, totaling around 3,000 people displaced within a single year. This drastic outflow could further increase by an estimated 1,000 if production at Northvolt's local factory does not resume soon.
The current population of Skellefteå stands at approximately 76,840, which had previously experienced a surge of over 5,300 new residents since 2021. However, this positive trend is now reversing. Housing market conditions have sharply deteriorated, with hundreds of apartments now vacant and condominium prices plummeting by about 20%.
Economic chief Samuel Lundqvist characterized the situation as dire, warning that the municipality’s ambitious growth goals—targeting a population of 95,000 by 2030 and 105,000 by 2040—are now in serious jeopardy. Lundqvist underscored the urgency for the local government to reassess its investment strategies and housing developments, noting, "The situation is miserable."
Historically, Skellefteå has thrived as one of Sweden's wealthiest municipalities, benefiting from its abundant hydroelectric power resources. However, the bankruptcy of Northvolt signals a significant shift, raising concerns about the long-term economic and social stability of the region as it grapples with these unexpected challenges.